This article outlines some of the principal issues in the development of numerical methods for the prediction of flows over aircraft and their use in the design process. These include the choice of an appropriate mathematical model, the design of shock-capturing algorithms, the treatment of complex geometric configurations, and shape modifications to optimize the aerodynamic performance.While computational methods for simulating fluid flow have by now penetrated a broad variety of fields, including ship design, car design, studies of oil recovery, oceanography, meteorology, and astrophysics, they have assumed a dominant role in aeronautical science. In the aircraft industry there is often a very narrow margin between success and failure. In the past two decades the development of new commercial aircraft successful enough to make a profit for the manufacturer has proved an elusive goal. The economics of aircraft operation are such that even a small improvement in efficiency can translate into substantial savings in operational costs. Therefore, the operating efficiency of an airplane is a major consideration for potential buyers. This provides manufacturers with a compelling incentive to design more efficient aircraft.One route toward this goal is more precise aerodynamic design with the aid of computational simulation. In particular it is possible to attempt predictions in the transonic flow regime that is dominated by nonlinear effects, exemplified by the formation of shock waves. The importance of the transonic regime stems from the fact that to a first approximation, cruising efficiency is proportional to ML/D, where M is the Mach number (speed divided by the speed of sound), L is the lift, and D is the drag. As long as the speed is well below the speed of sound, the lift-to-drag ratio does not vary much with speed, so it pays to increase the speed until the effects of compressibility start to cause a radical change in the flow. This occurs when embedded pockets of supersonic flow appear, generally terminating in shock waves. A typical transonic flow pattern over a wing is illustrated in Fig. 1. As the Mach number is increased the shock waves become strong enough to cause a sharp increase in drag, and finally the pressure rise through the shock waves becomes so large that the boundary layer separates. The most efficient cruising speed is usually in the transonic regime just at the onset of drag rise, and the prediction of aerodynamic properties in steady transonic flow has therefore been a key challenge.Prior to 1965 computational methods were hardly used in aerodynamic analysis, although they were widely used for structural analysis. There was already in place a rather comprehensive mathematical formulation of fluid mechanics. This had been developed by elegant mathematical analysis, frequently guided by brilliant insights. Well-known examples include the airfoil theory of Kutta and Joukowski, Prandtl's wing and boundary layer theories, von Karman's analysis of the vortex street, and more recently Jo...